- UK Finance launches GBTD pilot with six banks to test tokenised sterling deposits through 2026.
- Quant Network will provide infrastructure for the digital sterling pilot, exploring payments, remortgaging and bond settlement.
- FCA prepares crypto rules by 2026 as the UK tests tokenised deposits to enable safer, more efficient transactions.
UK Finance has launched a pilot program for tokenised sterling deposits (GBTD), marking a move toward digital innovation within traditional banking.
The initiative, announced on Friday, is being developed with six major banks — Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander — and will run until mid-2026.
The pilot will assess how tokenised deposits could modernise payments, reduce fraud and improve settlement processes, while aligning with the government’s broader effort to clarify regulation for crypto-assets by 2026.
Six banks test digital sterling deposits
The GBTD pilot is designed to create a digital representation of commercial bank money denominated in British pounds.
By partnering with these six banks, UK Finance aims to measure how tokenised deposits could increase efficiency for consumers, businesses and the wider UK economy.
The initiative is expected to support more secure transactions, streamline settlement systems and give consumers greater control over payments.
Quant Network, a UK-based blockchain interoperability firm, will provide the underlying infrastructure for the project.
The company previously supported the Regulated Liability Network (RLN), a shared-ledger financial markets framework tested in 2024 with the same banks and additional institutions including Citi, Mastercard, Standard Chartered, Virgin Money and Visa.
Quant Network to build the infrastructure
Quant’s involvement will enable the GBTD pilot to test use cases across three areas — payments on online marketplaces, remortgaging processes and wholesale bond settlement.
The firm says the project goes beyond simple payments, introducing programmable money that can change how value is managed and transferred.
The technology aims to deliver efficiency gains and new settlement models that could support both retail and wholesale financial activity.
The project builds directly on RLN’s earlier work, which created a regulated environment for testing distributed ledger technology within traditional banking operations.
By applying lessons from that initiative, the GBTD pilot is expected to produce practical outcomes that could be adopted at scale in the coming years.
Pilot tied to upcoming regulation
The launch coincides with the Financial Conduct Authority (FCA) finalising a regulatory regime for crypto-assets, with implementation planned for 2026.
In April 2025 the Treasury published a policy note clarifying how qualifying stablecoins and tokenised deposits will differ from electronic money.
The FCA has accelerated crypto approvals after criticism, laying the groundwork for a more structured framework.
Meanwhile, the EU has already implemented its Markets in Crypto-Assets (MiCA) regulation, which covers many aspects of tokenisation.
Tokenised deposits remain outside MiCA’s scope because they continue to fall under traditional deposit and banking rules.
This regulatory distinction highlights the UK’s effort to create a clear path for tokenised commercial bank money as part of its wider financial innovation strategy.
What the project aims to achieve
The pilot is expected to run for at least 18 months, with findings intended to inform future policy decisions.
By testing tokenised deposits in real-world scenarios, UK Finance and its partners aim to understand how these instruments could integrate within regulated banking systems.
The project is positioned as an experiment to introduce distributed ledger technology into mainstream financial services without displacing existing banking structures.